TSLA, IBM, UNP, AEO and more
Check out the companies making headlines in midday trading: Union Pacific , Norfolk Southern — Union Pacific said it was in advanced talks about a potential combination with Norfolk Southern, which would create the largest U.S. railroad. Union Pacific shares fell almost 3%, while Norfolk Southern slipped less than 1%. CSX — Shares rose less than 1% after talks between rival railroad operators stoked deal speculation. The company’s CEO Joseph Hinrichs said in an interview that he was open to “all possibilities.” IBM — The tech stock fell 7% after the company reported disappointing revenue at its software business. While IBM raised its forecast for full-year free cash flow, it held to its revenue forecast. American Eagle Outfitters — The apparel retailer added 4% after launching an ad campaign featuring actress Sydney Sweeney, fueling speculation that it could be the next name to join the resurgence of meme stocks. American Eagle is down almost 50% over the past year. The move comes amid a revival of meme stock activity that has hit Opendoor, GoPro and others. Opendoor Technologies jumped 18%, while Krispy Kreme lost nearly 2%. UnitedHealth Group — Shares of the health insurer fell about 4% after it said it is complying with Department of Justice criminal and civil requests as part of an investigation into its Medicare billing. The company said it has “full confidence” in its practices. Albemarle — Shares of the U.S. miner jumped almost 6% after lithium futures surged overnight, amid rumors that China is trying to address overcapacity by cracking down on mines that violate rules and regulations. West Pharmaceutical — Shares of the pharmaceutical company rose more than 20% after it raised its profit forecast, saying the effect of tariffs would be less than it originally expected. Bloom Energy — Shares jumped more than 22% after the fuel cell developer struck a deal with Oracle to deliver onsite power to the tech company’s artificial intelligence data centers. Dow Inc. — The chemical company’s stock slid more than 16% after disappointing second-quarter results. Dow posted a loss of 42 cents per share, excluding items, on $10.1 billion in revenue, while analysts penciled in a loss of 17 cents per share and $10.23 billion in revenue, according to LSEG. Alphabet — Shares of the Google parent rose 1% on a stronger-than-anticipated earnings report. Alphabet reported earnings of $2.31 per share on $96.43 billion in revenue for the second quarter, surpassing expectations of $2.18 in earnings per share and $94 billion in revenue from analysts, according to LSEG. ServiceNow — Shares climbed nearly 4%. The software company hiked its full-year guidance for subscription revenue after beating Wall Street expectations for the second quarter. Chipotle — Shares of the fast-casual burrito chain plunged 13%. The company cut its same-store sales forecast and posted weaker revenue for the second quarter than anticipated by analysts polled by LSEG. Tesla — The electric vehicle manufacturer fell 9% after missing expectations on both lines in the second quarter. Tesla earned an adjusted 40 cents per share on $22.5 billion in revenue, missing consensus estimates for 43 cents in earnings and $22.74 billion in revenue, per LSEG. Honeywell — Shares ticked 5% lower even as Honeywell topped expectations for second-quarter earnings and offered upbeat guidance. Honeywell reported adjusted earnings of $2.75 per share on $10.35 billion in revenue, exceeding forecasts of $2.66 per share and $10.07 billion in revenue from analysts surveyed by LSEG. American Airlines — Shares of the air carrier fell 8% after the company’s third-quarter profit forecast fell short of expectations . For the third quarter, American said it expects an adjusted per-share loss of between 10 cents and 60 cents, while analysts polled by LSEG estimated a loss of 7 cents. T-Mobile — Shares jumped 6% after the telecommunications company shared better second-quarter earnings than anticipated. T-Mobile posted earnings of $2.84 per share and $21.13 billion in revenue, beating the estimates of $2.67 per share and $21.02 billion from analysts, per LSEG. Las Vegas Sands — The casino operator’s stock rallied 4% after second-quarter earnings results topped predictions. Las Vegas Sands reported adjusted earnings of 79 cents per share on $3.18 billion in revenue versus estimates of 53 cents per share and $2.83 billion in revenue from analysts surveyed by LSEG. Molina Healthcare — Shares dove 14% on weaker-than-forecast earnings. Molina earned an adjusted $5.48 per share versus LSEG’s analyst consensus estimate of $5.79 per share. — CNBC’s Alex Harring, Yun Li and Tanaya Macheel contributed reporting.
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